What is a commercial mortgage?
A commercial mortgage is a long-term loan secured against a commercial or semi-commercial property. They are used for two main purposes: owner-occupied (buying the premises your business operates from) or investment (buying a commercial property to let to tenants).
Can I get a commercial mortgage with a CCJ or adverse credit?
Yes. Specialist commercial mortgage lenders assess the strength of the business or the rental income from the property alongside the borrower's credit history. Adverse credit is one factor — the lender will look at the full picture.
Owner-occupied
Assessed on business trading history, affordability and the property value.
Investment
Assessed on rental income, tenant strength, void risk and property value.
Semi-commercial
Mixed-use properties (e.g. flat above shop) assessed on blended basis.
Portfolio
Multiple commercial properties assessed on overall portfolio performance.
How is affordability assessed?
For owner-occupied commercial mortgages, lenders typically look at the business's trading accounts (usually 2–3 years), the ability to service the debt from business profits, and the value of the security property. For investment commercial mortgages, the rental income from existing or prospective tenants is the primary affordability measure.
Commercial mortgages are not regulated by the FCA. This means lenders have more flexibility to consider adverse credit — but it also means you have less consumer protection than on regulated residential products.
What types of commercial property can be funded?
Our lender panel covers a wide range of commercial property types: retail units and shopping centres, office buildings and business parks, industrial units and warehouses, mixed-use buildings (including those with residential above commercial), licensed premises including pubs and restaurants, and healthcare and care home facilities.